Scottish first division club Dundee face financial problems and a possible points deduction through administration. The club was last in administration in 2004 and some fans think that the situation was more serious then. However, there are uncertainties about the future involvement of the club’s benefactor, Calum Melville, while Revenue and Customs are pressing for settlement of a £250,000 tax bill and have apparently rejected a suggestion of payment by instalments.
Scottish first division club Dundee face financial problems and a possible points deduction through administration. The club was last in administration in 2004 and some fans think that the situation was more serious then. However, there are uncertainties about the future involvement of the club’s benefactor, Calum Melville, while Revenue and Customs are pressing for settlement of a £250,000 tax bill and have apparently rejected a suggestion of payment by instalments.
The club has been running in arrears on its tax bills for 19 months. Calum Melville takes the view that the club has been singled out and is being made an example of to Scottish football more generally. While one has every sympathy with the concerns of Dundee fans, on the face of it this looks like another example of a football club treating tax liabilities as an optional extra at the expense of other taxpayers and the public purse.
Calum Melville has apparently offered to stand down from the Dundee board. The club’s solicitor stated that the multi-millionaire was ‘physically and mentally incapable’ of attending a recent employment tribunal involving the sacking of the club’s former manager and Jocky Scott and his assistant.
Earlier this month Melville was suspended from his post as the head of the offshore division of Cosalt while an investigation was carried out. He also resigned as a director of the company. The company has emphasised that there is no suggestion of any illegality.
Benefactors are welcomed with open arms by clubs in difficulty. The problems start when the benefactor encounters challenges. Reliance on one indiviudual is an inherently unstable way of running a club, but often it is the only available option. In the present financial climate it would be difficult to replace Calum Melvillle should he decide to call it a day.